WHEREAS,
the properties and other assets of several industrial corporations have
been foreclosed, particularly by creditor government financial
institutions, to partially satisfy the said corporations' outstanding
obligations to the Government;chanroblesvirtualawlibrary
WHEREAS, foreclosure has left the debtor corporations with virtually no
equity and operating assets;chanroblesvirtualawlibrary
WHEREAS, thousands of industrial workers and their families have been
dislocated and unemployed for a long time as a result of the shutdown
of operations occasioned by the default of the borrower corporations
and the subsequent foreclosure of their mortgaged
properties; chanroblesvirtualawlibrary
WHEREAS, it is essential to the national economic recovery in general
and to the general welfare of displaced industrial workers in
particular that the operations of foreclosed industrial facilities and
other assets should be resumed; chanroblesvirtualawlibrary
WHEREAS, certain government financial institutions have actually been
able to resume the operation and management of the foreclosed
properties of borrower corporations, but are now saddled with huge tax
obligations to the Government relative to the ownership, operation,
foreclosure and transfer of the defaulting borrowers' assets;chanroblesvirtualawlibrary
WHEREAS, these creditor institutions and borrower corporations are
presently not in a position to pay their tax obligations in full to the
Government;chanroblesvirtualawlibrary
WHEREAS, the general welfare of thousands of industrial workers and
ultimately the success of the national economic recovery efforts, would
be jeopardized if the Government does not support the viability of the
entities concerned;chanroblesvirtualawlibrary
WHEREAS, one way of ensuring the viability of entities who resume the
operation and management of foreclosed properties, would be to forego
the tax obligations of the creditor institutions and the borrower
corporations to the Governments;chanroblesvirtualawlibrary
WHEREAS, in the view of the present economic emergency, there is a need
to act expeditiously to preserve and promote the general welfare of
thousands of industrial workers and to ensure national economic
recovery;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
decree:cralaw:red
Section 1. Government financial institutions who are
able, directly or through a subsidiary or subsidiaries, to resume the
operation and management of the foreclosed properties of borrower
industrial corporations, shall be exempt from the payment of all taxes,
fees and charges of whatever kind and nature, whether national or
local, that are due by reason of the foreclosure and transfer to the
said institutions of the assets of the defaulting borrower, as well as
the subsequent transfer of the same assets to the said institutions'
subsidiary or subsidiaries. chanroblesvirtualawlibrary
Section 2. All taxes, fees, charges and royalties due
as of December 31, 1985 and payable to the Government by borrowers —
corporations whose properties have been foreclosed and subsequently
operated and managed by creditor government financial institutions,
directly or through a subsidiary or subsidiaries, are hereby condoned;
Provided, however, That the condonation herein granted shall not in any
manner be interpreted to include any further and outstanding liability
of the borrowers to the government financial institutions concerned for
loan, guarantee or credit accommodations extended to the said
borrowers. chanroblesvirtualawlibrary
Section 3. All laws, executive, or parts, rules and
regulations, and other enactments, or parts thereof, inconsistent with
the provisions of this Decree, are hereby repealed, amended or modified
accordingly.
Section 4. This Decree shall take effect immediately.
DONE in the City of Manila,
this 31st day of October, in the year of Our Lord, nineteen hundred and
eighty-five.
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